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Branding Marketing & Selling to Muticultural Audiences

#multiculturaldemographics #multiculturalmarketing
Presentation by Shawne Howell of Marketing Strategies, for MFHA in 2013. Presents facts and figures on key multicultural demographics in the US and makes a case to businesses on leveraging these findings to connect with multicultural targets.

4.
Cultural Dynamics Have Changed
Cultural dynamics
have always existed
in the U.S.A. but they
have changed
because the
population growth
and spending
power of people of
color have
skyrocketed!
``
THEN: Melting Pot NOW: Bowl of Gumbo
Copyright MFHA 2014

5.
Multicultural Market Growth
Multicultural population growth is
projected to outpace Caucasian
population growth in the next
40 years
Source: Nielsen
Source: Nielsen
Copyright MFHA 2014

6.
What’s Driving Multicultural Population Growth?
Non-whites represented
almost 37% of the U.S.
population in the 2010 U.S.
Census; however 50% of all
babies born were non-white
for the first time in U.S.
history
Source: The U.S. Census
Copyright MFHA 2014

7.
The Tipping Point
Based on current
projections, after
2040, the U.S. will
be majority non-
white for the first
time in its history!
Source: Policy Link
Copyright MFHA 2014

8.
Multicultural Buying Power
As of 2010, the buying power of the multicultural market
at approximately $2.5T was tied with France for the 5th
largest Gross Domestic Product (GDP) of the leading
countries in the world!
1. U.S.A
2. China
3. Japan
4. Germany
5. France and the U.S. Multicultural Market
Source: Washington Post
Copyright MFHA 2014

12.
Key Industry Facts
• In recent years, spending on
eating away from home in African
American and Hispanic
households has increased 43.6 %
anD 34.3%, respectively
Copyright MFHA 2014

13.
Hispanic/Latino Key Demographics
• Buying power of approximately $1.3T
• Hispanics make up approximately 16 percent of
the total U.S. population, representing 50.5
million people
• In the last decade, Hispanics accounted for
every 1 out of every 2 individuals added to the
U.S.
• 10 states with largest Hispanic markets:
California, Texas, Florida, New York, Illinois,
New Jersey, Arizona, Colorado, New Mexico,
and Georgia.
Sources: Selig Center for Economic Development and The U.S. Census
Copyright MFHA 2014

14.
Hispanic/Latino Lifestyle & Culture
• Hispanics/Latinos are an ethnically and racially
diverse population with the majority being Mexican
Americans (65%)
• A large majority (76%) of the Hispanic/Latino
community speaks English, and 71% speak
Spanish at home
• Hispanics/Latinos are brand loyal, but tend to be
price conscious.
• Almost 1/3 of Hispanics/Latinos work in service
industries
• Hispanics are family-centered
– The extended family plays a major role
• Religion plays a central role in the lives of
Hispanic/Latino Americans
Sources: The Pew Center, National Council of La Raza (NCLR) and CEPR
Copyright MFHA 2014

15.
African-American Key Demographics
• African-Americans have approximately $957B in buying
power!
• Despite being the hardest hit by the current recession,
the African-American buying power is projected to rise
to $1.2T by 2015, an increase of 25%
• African-Americans represent approximately 13% of the
population, or 38 million people in the U.S.
• Between 2010 and 2015, African-Americans will grow
38 people/hour
• 10 states with the largest African-American markets:
New York, Texas, Georgia, California,
Florida, Maryland, Illinois, North
Carolina, Virginia, and New Jersey
Sources: The Selig Center for Economic Growth, The U.S. Census and Geoscape
Sources: Selig Center for Economic Development and The U.S. CensusCopyright MFHA 2014

16.
African-American Lifestyle & Culture
• African-Americans are brand conscious and
the most brand loyal.
• African-Americans are consumer
trendsetters
• The majority of African-Americans are spiritual
people
• 54% of African-Americans are educated,
ranging from some college(34%) and up to a
master’s degree (21%)
• Most preserve traditions associated with
music, culture and food.
• African-Americans trust Black media more
than any other institution, and many are
distrustful of main stream media.
• Most prefer businesses that give back to the
Black community.
Sources: 2008 Radio One/Yankelovich Study and Target Market News
Copyright MFHA 2014

17.
Asian-American Key Demographics
• Asians have nearly $544B in buying power!
• By 2015, Asian buying power is expected to grow 42
percent to $775 billion
• The nation's 14.5 million Asian-Americans are nearly
5% of the U.S. population
• The majority of the population consists of
Chinese/Taiwanese; Asian Indians; Filipino,
Vietnamese and Korean
• Three -fourths of Asian workers were born outside the
United States; but 71.4% of Asian workers are U.S.
citizens
• 10 states with the largest Asian consumer markets:
California, New York, Texas, New Jersey, Illinois,
Hawaii, and Washington,
Florida, Virginia, Massachusetts
• Asians are the fastest growing multicultural race
Sources: The Selig Center for Economic Growth, CEPR and The U.S Census
Copyright MFHA 2014

18.
Asian-American Lifestyle & Culture
• Asian-Americans are more likely to look at products
and features before making a purchase (value
concious)
• Asian American households tend to be larger, with
more workers and several generations living under
one roof
• The largest single industry for Asian-American men is
restaurants
•
• Asian Americans tend to live two distinct socio
economic lifestyles among their population
– High income earners
– Low income earners
• The ‘Asian Pacific American’ umbrella includes over
45 distinct ethnicities speaking over 100 language
dialects
Sources: CEPR, Pew Research Center and Nielsen
Sources: The Selig Center for Economic Growth, CEPR and The U.S Census
Copyright MFHA 2014

20.
Restaurant Industry Case Study
Situation
A leading fast food
chain wanted to
feature an award
winning African-
American singer in a
celebrity campaign
series to introduce
new products
Strategy/Execution
The company
produced a
commercial for a new
fried chicken wrap
product incorporating
the melody of the
award winning
singer’s song
An unfinished version
got into the hands of
the public
Results
A firestorm of negative
publicity from leading
magazines, nightly
newscasts, daytime shows,
blogs, and social media
sites that lasted for weeks
A barrage of negative
feedback and outrage
from African-American
customers
Public apologies had to
be issued from the singer,
and to the singer and the
community
A damaged image from
negative publicity
Wasted resources and lost
sales
Sources: The Selig Center for Economic
Growth, CEPR and The U.S Census
Copyright MFHA 2014

21.
Restaurant Industry Case StudySituation
A leading fast food
chain wanted to
give back to the
diverse
communities of
their employees,
suppliers, and
customers
Strategy/Execution
The company
collaborated with their
African-American
Advertising Agency of
record to develop an
African American
grassroots program in a
low income community,
that would have a “fun”
element and activities
(basketball, local and
national entertainment,
and prizes), as well as an
educational component
Results
Increased brand loyalty
and relevancy
Enhanced credibility and
affinity
Strengthened
relationship with
community and
provided a positive
family oriented
experience
Created educational
opportunities for GED
completion and attend
college attendance in 14
key markets that would
impact the community
for several generations
Copyright MFHA 2014

22.
Food Manufacturer Case Study
Situation
A leading cookie
manufacturer
wanted to see if its
current advertising
campaign resonated
with Multicultural
consumers
Strategy/Execution
The brand group
collaborated with a
national research
company to
conduct an ad
effectiveness study
An English language
TV ad featuring a
familial theme was
tested with
Caucasians and
Multicultural
customers
The benchmark for a
“top” ad was 120
Results
The ad received a top ad
score of 320 amongst
Hispanic customers
The index for Hispanic
customers was 2.7 times
higher than the general
market
Sales amongst Hispanic
consumers increased 41%
Insights revealed that
multicultural customers
respond to certain themes,
even when it is a general
market ad
Spending efficiencies were
realized
Copyright MFHA 2014

24.
Key Success Factors
Ask yourself these questions before you proceed…
• What does your organization already know?
• Are you prepared to be the initiative “champion”, or support
him or her?
• Which multicultural group(s) have a need for your products
or services?
• What are the key culture and lifestyle elements you can
leverage the most for your business?
• Are they currently spending money in the category(ies) your
business represents
• Where is the low hanging fruit?
• Are there resources that can be allocated?
Copyright MFHA 2014

25.
What Top Performing Companies Do
• 100% gather relevant information from different sources
so that they can maximize their knowledge
• 100% target more than 1 group
• 81% feel it’s important to reach multicultural customers
• 45% have senior level positions dedicated to
multicultural marketing and sales
• 40% have a separate budget for multicultural marketing
and sales efforts
45% of top performing companies have senior level
positions dedicated to multicultural marketing and sales
efforts
• Make sure you measure results
• Learn from your mistakes, and make adjustments as
needed
• Share best practices
• Never stop learning
• 45% of top perfoSource: Nielsen
• rming companies have senior level positions dedicated to multicultural marketing and sales efforts
Copyright MFHA 2014

26.
Perception vs. RealityPerception
Asian Americans
are smarter than
everyone else; all
are high
achieving; Asians
are the “model
minority”
Reality
Many Asians immigrated here
because they were able to
receive visas due to technical
skills; immigrant children of
other cultures also have high
GPA’s; while high achieving
Asians have more college
degrees than the average
American, more than 1/3 of
Cambodians and Laotians do
not have a high school
diploma and live in poverty
Copyright MFHA 2014

27.
Perception vs. RealityPerception
Blacks/African-
Americans are
poor; they are
uneducated; they
speak English so
they don’t need a
multicultural
marketing focus
Reality
The Black race is diverse and
1/3 of all Blacks make more
than $50,000 a year; 54% of
them have some education
beyond high school; and
although they speak English,
they have significant cultural
differences that warrant
targeted marketing
Copyright MFHA 2014

29.
Conclusion
• There are significant cultural differences
that can be leveraged to grow your business
for the long-term
• Increase your Cultural Intelligence to
increase your comfort and knowledge
• Strive to replicate the top performers
• Invest in multicultural efforts for the long-
term
• Don’t just focus on one group
• If you approach the multicultural market in the
right way, there is no way you can go wrong!
Copyright MFHA 2014

32.
Meet Gerry A. Fernandez
President & Founder
Gerry Fernandez is
MFHA’s chief
visionary and
thought leader on
multicultural
business strategies
in the industry. He is
the “voice” of
MFHA.
Copyright MFHA 2014